Did anyone get the letter saying their interest rate is going up to 23.99%?

:yikes:

Glad I don't owe anything on mine & will probably cancel my account with them.

JC Penney letter about raising my rate. (http://jc-penney.pissedconsumer.com/jc-penney-letter-about-raising-my-rate-20091029160540.html)

Congress wants to stop credit card rate hikes in tracks - Oct. 28, 2009 (http://money.cnn.com/2009/10/28/news/economy/credit_card_practices/index.htm)

All credit card companies are making changes to their terms, rates, over limit, etc. My CPFCU credit card is going adjustable (no longer fixed). They are doing it across the board. Not sure if that's good or bad. :ohwell:

Did anyone get the letter saying their interest rate is going up to 23.99%?

:yikes:

Glad I don't owe anything on mine & will probably cancel my account with them.

JC Penney letter about raising my rate. (http://jc-penney.pissedconsumer.com/jc-penney-letter-about-raising-my-rate-20091029160540.html)

Congress wants to stop credit card rate hikes in tracks - Oct. 28, 2009 (http://money.cnn.com/2009/10/28/news/economy/credit_card_practices/index.htm)No need to cancel. Just pay it off when you get the bill. :shrug:

Banks Expected to Tighten Terms on Credit Cards (http://www.cnbc.com/id/33800004/site/14081545/for/cnbc/)


Banks expect to tighten terms on credit cards in response to a new law that aims to protect consumers from sudden rate hikes, the Federal Reserve said Monday.

A quarterly survey by the Fed found that many banks expect to increase rates, reduce credit limits and raise annual fees for both prime borrowers — those with sound credit histories—as well as more risky "non-prime" borrowers, who have tarnished credit. Banks also expected to raise minimum credit scores for non-prime borrowers, the Fed said.

Banks already have been pushing through rate increases in anticipation of the new rules. Because of that, the House recently approved legislation to speed up the law's effective date and have the provisions take effect immediately, although prospects are dim for Senate passage.


A look at credit card interest rate increases (http://www.cnbc.com/id/33624337/for/cnbc/)


Credit card interest rate increases are behind the House's vote Wednesday to make new rules on credit card companies immediately, accelerating the February enactment date in legislation previously passed by Congress.

House Democrats say the change is needed because lenders are raising rates ahead of the Feb. 22 deadline. President Barack Obama signed the bill May 22.



A Squeeze on Customers Ahead of New Rules (http://www.cnbc.com/id/33825934/site/14081545)

Banks are struggling to make money in the credit card business these days, and consumers are paying the price. Interest rates are going up, credit lines are being cut and a variety of new fees are being imposed on even the best cardholders.

No need to cancel. Just pay it off when you get the bill. :shrug:

Or tell them you reject the new terms and you can payoff the balance making your normal monthly payments as long as you dont use the card again. This is way it USED to be.

All credit card companies are making changes to their terms, rates, over limit, etc. My CPFCU credit card is going adjustable (no longer fixed). They are doing it across the board. Not sure if that's good or bad. :ohwell:

It is being done in advance of the laws going into effect (Feb 2010) that puts restrictions (does not preclude) on credit card companies being able to change the rates as they wish, when they wish.

To go from a "fixed" to a "variable" or "adjustable" rate and for you to accept is saying "ok all previous agreements are off, you can charge whatever rate you want, when you want, and change it whenever you want, and I am good with that"

Or tell them you reject the new terms and you can payoff the balance making your normal monthly payments as long as you dont use the card again. This is way it USED to be.

Yep. One of my cards raised rates through the roof but had the 'opt out' option. I opted out and they lost a 13 year customer.

Yep. One of my cards raised rates through the roof but had the 'opt out' option. I opted out and they lost a 13 year customer.

Good for you, same here with Discover card. Had them since 91 and got a notice saying i was going from 9.9 fixed to a variable of like 7.9 + prime and I told them forget it. For a year I received offers to come back at a fixed rate of 13.99. F'ers

The next thing to look for is a yearly fee for the right to use the card.

If you're concerned about your credit score, it may not be a good idea to cancel a card, especially if you're had it for a very long time. That can have a negative impact on your credit score. Pay off the card and don't use it. If you pay off a credit card balance every month, it really doesn't matter what they charge for interest.

The next thing to look for is a yearly fee for the right to use the card.

Kinda of a catch-22 for the credit companies. Rates are being raised to cover losses or improve their net. Rates go up, people cancel cards. Rates go up to cover those losses, more people cancel cards. Charge a yearly fee just to have it, more people cancel. Seems to me the credit companies will never catch up with this strategy.

If you're concerned about your credit score, it may not be a good idea to cancel a card, especially if you're had it for a very long time. That can have a negative impact on your credit score. Pay off the card and don't use it. If you pay off a credit card balance every month, it really doesn't matter what they charge for interest.

They do not care about the guy that thinks it through as you do, you are not the person they make their money on.

Deadbeat in the Credit Card industry is defined as a person who does not carry a balance.

Dr. Elizabeth Warren tells a story of talking with a group of Banking Executives concerning tighter requirements to obtain loans. Sort of what we are sorta having now. The theory of tightening up the requirements to borrow money so that only those who could pay it back were offered the money would cut down on problems. Many of the rank and file exec's in the room heartily agreed.

But then in the back a CEO stood up and quietly said. "I don't care if anyone ever pays back the money they borrow or pays on time. I make my money on the interest, fee's and penalties."

So, you can see, they could care less if they lose people like you. And also as you can see they are already figuring out ways around whatever legislation is cooked up.

They do not care about the guy that thinks it through as you do, you are not the person they make their money on.

Deadbeat in the Credit Card industry is defined as a person who does not carry a balance.

Dr. Elizabeth Warren tells a story of talking with a group of Banking Executives concerning tighter requirements to obtain loans. Sort of what we are sorta having now. The theory of tightening up the requirements to borrow money so that only those who could pay it back were offered the money would cut down on problems. Many of the rank and file exec's in the room heartily agreed.

But then in the back a CEO stood up and quietly said. "I don't care if anyone ever pays back the money they borrow or pays on time. I make my money on the interest, fee's and penalties."

So, you can see, they could care less if they lose people like you. And also as you can see they are already figuring out ways around whatever legislation is cooked up.

Absolutely agree, from their point of view. But that won't stop them from raising your rate or flagging your credit report. An individual still has to do whatever they can to minimize the impact to themselves. Those that don't, well, they pay the credit companies executives salaries rather than me.

Absolutely agree, from their point of view. But that won't stop them from raising your rate or flagging your credit report. An individual still has to do whatever they can to minimize the impact to themselves. Those that don't, well, they pay the credit companies executives salaries rather than me.

Agree. And I minimized their impact to zero a long time ago. My same as cash program is "cash" and the plastic I use has a name too . . . Debit.

Agree. And I minimized their impact to zero a long time ago. My same as cash program is "cash" and the plastic I use has a name too . . . Debit.

:yay:

I pay off my card every month and I only have one - no store cards or anything like that. So my cc company will probably figure out a way to get rid of me. :lol:

I'll miss my points and free stuff. :frown:

Deadbeat in the Credit Card industry is defined as a person who does not carry a balance.



Woohoo - I'm a deadbeat! :yahoo:

I pay off my card every month and I only have one - no store cards or anything like that. So my cc company will probably figure out a way to get rid of me. :lol:

I'll miss my points and free stuff. :frown:

Except I have 2. When I got the one with points, etc., I didn't want to cancel the other one and change my score.

No need to cancel. Just pay it off when you get the bill. :shrug:

I don't owe them anything. Maybe I just won't carrry it around with me, hide it so that just in case I REALLY NEED something from JC Penney. :killingme

It is being done in advance of the laws going into effect (Feb 2010) that puts restrictions (does not preclude) on credit card companies being able to change the rates as they wish, when they wish.

To go from a "fixed" to a "variable" or "adjustable" rate and for you to accept is saying "ok all previous agreements are off, you can charge whatever rate you want, when you want, and change it whenever you want, and I am good with that"

:yeahthat: That's what they are doing.

Credit Card Bill of Rights (http://www.billshrink.com/credit-cards/bill-of-rights/)

Pretty good website.

Woohoo - I'm a deadbeat! :yahoo:
Me too! :high5:

JC Penny and Sears always have sucked. I have a JC Penny card they talked me into getting when they offered me $20 off a purchase if I opened the account. I got the terms in the mail with the card and it was something insane like 23%. I paid it off and never used it again. It is still on my credit report as an open acount but has never had a balance.

Sears is the same. it was some astronomical rate. I use it when they have their 0%, no payments for 12 month deals that only apply when you use your Sears card. I think it changed to a Sears Mastercard a couple years ago and I still wont use it.

I could never understand the lure of a store card. The mess on my credit report was never worth the $10 or whatever I'd get off my first purchase. I had a Fashion Bug card when I was a kid and didn't know any better, but now I have a MC for personal, an AmEx for business, and that's it.

I could never understand the lure of a store card. The mess on my credit report was never worth the $10 or whatever I'd get off my first purchase. I had a Fashion Bug card when I was a kid and didn't know any better, but now I have a MC for personal, an AmEx for business, and that's it.

:yay: Everytime I go into Peeblefinkels they ask me if I want their store CC, and when I say no, sometimes I'll get their haughty "what? you don't want our exclusive Peeblefinkels special savings available only to our customers who use their Peeblefinkels CC?" look. :lol:

I could never understand the lure of a store card. The mess on my credit report was never worth the $10 or whatever I'd get off my first purchase. I had a Fashion Bug card when I was a kid and didn't know any better, but now I have a MC for personal, an AmEx for business, and that's it.

Well the JC Penny card was foolish. The Sears card does pay. I buy my big ticket stuff using their 0% deals.

:yay: Everytime I go into Peeblefinkels they ask me if I want their store CC, and when I say no, sometimes I'll get their haughty "what? you don't want our exclusive Peeblefinkels special savings available only to our customers who use their Peeblefinkels CC?" look. :lol:

Target are cc whores too. EVERY TIME I go they ask.

Target are cc whores too. EVERY TIME I go they ask.

That's fine - they're cashiers and have to ask. But when they get insistent, that's when I have a problem.

Did anyone get the letter saying their interest rate is going up to 23.99%?

:yikes:

Glad I don't owe anything on mine & will probably cancel my account with them.

JC Penney letter about raising my rate. (http://jc-penney.pissedconsumer.com/jc-penney-letter-about-raising-my-rate-20091029160540.html)

Congress wants to stop credit card rate hikes in tracks - Oct. 28, 2009 (http://money.cnn.com/2009/10/28/news/economy/credit_card_practices/index.htm)

Oh wow, I think I will too. :shocked:

Or tell them you reject the new terms and you can payoff the balance making your normal monthly payments as long as you dont use the card again. This is way it USED to be.



I did that on 3 CC .... in 08 ...


Feb of this yr all 3 went to 18.9, 20.9 and 22.9 so much for locking it in @ the low rate :mad:


all through Chase ....

one was WAMU ( acquired by Chase ) and all interest rates went up after the acquisition

:faint:

Yes I did a few months back and had to write a letter to them to just close it down.